Hong Kong’s first-half IPOs soar eightfold, returning HKEX to world’s top spot for capital Funds from Hong Kong’s initial public offerings (IPOs) soared eightfold in the first six months of 2025, propelling the city’s exchange to the top of the global rankings for the first time since 2019. A total of 42 companies raised US$13.5 billion on the main board of the Hong Kong stock exchange during the first half, according to data released on Monday by the London Stock Exchange Group (LSEG). Nasdaq was second with US$8.85 billion, while the New York Stock Exchange ranked third with US$7.52 billion, according to LSEG data. “The IPO market in Hong Kong has continued its upwards trajectory since January, driven in part by DeepSeek’s influence,” which caused worldwide investors to re-evaluate and re-rate Asian stocks, said Haitong International’s head of equity capital markets Kenneth Ho Shiu-pong. “This resurgence has been supported by a substantial increase in active participation from international investors and significant Southbound inflows, further enhancing the market’s overall appeal,” Ho said. “A key factor sustaining this high level of activity is the robust post-listing performance, [where] the average IPO investors could enjoy a return exceeding 30 per cent.” Hong Kong jumped 12 spots in the first six months from a year earlier, capping the best first half since 2021, when proceeds surpassed US$30.28 billion, before the city’s stock market went into a deep freeze in a post-pandemic economic slump. The return to the top comes as the exchange operator Hong Kong Exchanges and Clearing (HKEX) marked the silver jubilee of its own listing on the bourse. HKEX’s chairman Carlson Tong Ka-shing and CEO Bonnie Chan Yiting have flagged a bumper year ahead, with almost 200 companies waiting in the pipeline to raise funds. The outlook is positive in the second half of 2025, as the full-year IPO proceeds could reach HK$200 billion (US$25.64 billion) from 80 listings, according to Deloitte China’s southern-region managing partner, Edward Au Chun-hing. “A strong IPO pipeline, growing momentum and a more favourable market environment are the growth engines,” Au said, adding that the pipeline is helped by Chinese companies’ push to expand overseas via HKEX. “Hong Kong’s capital market is gaining depth and dynamism, reinforcing its role as a premier global listing venue.” The benchmark Hang Seng Index has been one of the world’s best-performing major indexes this year, rising 20 per cent. The rally was triggered by the inexpensive artificial intelligence model released in December by DeepSeek, which caused global investors to question the huge valuations attached to Nvidia and other US technology stocks. Since then, scores of companies have flocked to Hong Kong to sell shares. Four of the deals that landed in Hong Kong are among the world’s 10 largest this year. At the top of the list was the US$5.24 billion IPO in May by Contemporary Amperex Technology (CATL), the world’s largest maker of battery packs for electric vehicles. For its trading debut, HKEX brought out its biggest ceremonial gong to mark the commencement of trading. Smaller IPOs filled the calendar. On two days last week, three companies had to share the stage with smaller ceremonial gongs when their stock made their trading debut on the same days. New York was still the top city for fundraising, as the combined IPO proceeds of the Nasdaq and the New York Stock Exchange exceeded Hong Kong’s by 21 per cent. Hong Kong’s post-listing fundraising also jumped substantially with two jumbo share placements. Chinese tech firm Xiaomi on March 25 raised US$5.4 billion, just weeks after rival BYD raised US$5.6 billion, the LSEG data showed. The blockbuster year of IPOs was a bumper harvest for investment banks. China International Capital Corp was the top book runner, with 20 deals that raised US$1.13 billion, according to LSEG. Morgan Stanley was second with six deals that raised US$933.5 million while UBS came in third with five IPOs that raised US$901.9 million. Kirkland & Ellis was the top legal adviser for IPOs, helping companies raise US$5.49 billion during the first half, while Llinks Law Office helped with US$5.25 billion, and Clifford Chance helped with US$2.78 billion. https://www.scmp.com/business/banking-finance/article/3316378/hong-kongs-first-half-ipos-soar-eightfold-returning-hkex-worlds-top-spot-capital (ICE HONG KONG)

Fonte notizia: South China Morning Post